Economics 10b Study Guide - Final Guide: Phase Diagram, Utility, Briey
13 Dec 2018
School
Department
Course
Professor
Document Summary
Please use a separate blue book for each part and write the. Question number on the front of the blue book. Please put your exam number on each book. Please do not write your name on your blue books. For those taking the general exam in macroeconomic theory: you have four hours, answer all questions in parts i, ii, iii, iv, and v, time allotted for each part: 1 t: if agents have constant relative risk aversion, the euler equation implies that predictable changes in log income should not predict changes in log consumption. More generally, ln( tc ) should be a random walk: assume that (0) 1 x. = and x follows geometric brownian motion, such that where dx xdt xdz. Then ( )x t is unbounded below: suppose that a firm faces a price, p, that is given by brownian motion with negative drift. Suppose that the firm has variable cost, c > 0.
